A KPMG survey released recently said while India’s business leaders understand the implications of climate change for the economy and their business, most of them don’t have a strategy in place to tackle the issues. Does this mean Indian industry thinks this problem does not belong in its backyard?
The survey of 70 CEOs found their response driven primarily by regulatory requirements. In other words, they would conform to any norms such as those set by the government on using energy-efficient appliances, etc., but did not have any action plans to translate good intentions about reducing their carbon footprint, or minimizing energy use.
It could take several years before government norms can be set for each industry sector. But there can be another important driver. That’s stakeholder pressure — a McKinsey global survey earlier this year found that a majority of the firms it surveyed saw climate change as an important consideration in managing corporate reputation and brands.